NXP Semiconductors (NASDAQ:NXPI – Get Free Report) and AXT (NASDAQ:AXTI – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Profitability
This table compares NXP Semiconductors and AXT’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NXP Semiconductors | 20.98% | 33.57% | 13.21% |
| AXT | -10.73% | -4.58% | -2.88% |
Earnings & Valuation
This table compares NXP Semiconductors and AXT”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NXP Semiconductors | $12.93 billion | 4.12 | $2.80 billion | $10.48 | 20.01 |
| AXT | $94.69 million | 1.02 | -$17.88 million | ($0.25) | -8.60 |
Institutional & Insider Ownership
90.5% of NXP Semiconductors shares are owned by institutional investors. Comparatively, 49.5% of AXT shares are owned by institutional investors. 0.1% of NXP Semiconductors shares are owned by insiders. Comparatively, 8.4% of AXT shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
NXP Semiconductors has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, AXT has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for NXP Semiconductors and AXT, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NXP Semiconductors | 1 | 5 | 14 | 0 | 2.65 |
| AXT | 0 | 0 | 5 | 0 | 3.00 |
NXP Semiconductors presently has a consensus target price of $274.14, indicating a potential upside of 30.72%. AXT has a consensus target price of $5.30, indicating a potential upside of 146.51%. Given AXT’s stronger consensus rating and higher probable upside, analysts clearly believe AXT is more favorable than NXP Semiconductors.
Summary
NXP Semiconductors beats AXT on 10 of the 14 factors compared between the two stocks.
About NXP Semiconductors
NXP Semiconductors N.V. offers various semiconductor products. The company's product portfolio includes microcontrollers; application processors, including i.MX application processors, and i.MX 8 and 9 family of applications processors; communication processors; wireless connectivity solutions, such as near field communications, ultra-wideband, Bluetooth low-energy, Zigbee, and Wi-Fi and Wi-Fi/Bluetooth integrated SoCs; analog and interface devices; radio frequency power amplifiers; and security controllers, as well as semiconductor-based environmental and inertial sensors, including pressure, inertial, magnetic, and gyroscopic sensors. Its products are used in various applications, including automotive, industrial and Internet of Things, mobile, and communication infrastructure. The company markets its products to various original equipment manufacturers, contract manufacturers, and distributors. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Taiwan, and internationally. N.V. was incorporated in 2006 and is headquartered in Eindhoven, the Netherlands.
About AXT
AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. The company offers indium phosphide for use in data center connectivity using light/lasers, high-speed data transfer in data centers, 5G communications, fiber optic lasers and detectors, consumer devices, passive optical networks, silicon photonics, photonic integrated circuits, thermo-photovoltaics, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LEDs, screen displays using micro-LEDs, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting, and drilling. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts. It sells its products through direct salesforce in the United States, China, and Europe, as well as through independent sales representatives and distributors in Japan, Taiwan, Korea, and internationally. The company was formerly known as American Xtal Technology, Inc. and changed its name to AXT, Inc. in July 2000. AXT, Inc. was incorporated in 1986 and is headquartered in Fremont, California.
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